The value of the US dollar Assignment Example | Topics and Well Written Essays - 250 words

The value of the US dollar - Assignment Example The value of the U.S dollar to rise or fall depends on how many dollars are printed by the state treasury department. The more money they print out, the less its worth. Also, the dollar’s value rises based on the demands in relation to other currencies (Goldberg & Tille, 2008). The U.S dollar demand is mostly from the people who buy U.S. exported goods. Government issues bonds, tourists, people who purchase real estates and the U.S corporations bonds and stocks. The Federal Reserve and the central bank supply the dollar. When we buy goods from Germany, the demand for the euro rises (Goldberg & Tille, 2008). This is because when they receive cash we have less money. Floating exchange rate arises when the state allows the exchange rates to affirm by market forces and no attempts to power the exchange rate. The Falling of the U.S dollar makes travelling expenses to rise. People will need to spend more dollars to purchase foreign currency. A cheap dollar will lead to cheap exports abroad, and imports will become more